The report below provides a good overview of the first quarter M&A activity in the Transport, Logistics and Supply Chain Industry Sector. M&A activity for North American based target companies in the Transportation and Logistics sector for Q4 2017 included 23 closed deals, according to data published by industry data tracker FactSet.
One of the largest transactions of the quarter closed in October when AMP Capital Investors Ltd, acquired ITS Technologies & Logistics LLC from Carlyle Infrastructure GP Ltd for US$500 million. AMP Capital Investors Ltd. (AMP Capital) is the wholly-owned investment management subsidiary of AMP Capital Holdings Ltd., ultimately held by financial group AMP Ltd. (SY: AMP, ADR: AMLYY) in Australia. ITS Technologies & Logistics provides rail intermodal terminal services. The firm offers rail terminal operations, auto loading and unloading, contract switching and lift equipment, and trailer and chassis maintenance. The company was founded in 1984 and is headquartered in Darien, IL.
There is a significant shortage of qualified truck drivers. As the US economy has improved, demand for freight transportation has grown, and carriers are increasingly concerned that trucking demand will outstrip the supply of qualified drivers.
Industry Indicators
- Total US manufacturers’ shipments, an indicator of demand for warehousing and storage facilities and services, rose 5.2% year-to-date in November 2017 compared to the same period in 2016.
- The spot price of crude oil, which affects energy costs for warehousing and storage, rose 15.0% in the week ending January 5, 2018, compared to the same week in 2017.
- Total US revenue for warehousing and storage rose 11.0% in the third quarter of 2017 compared to the previous year.
Posted by Peter Heydenrych.
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